Amazon to acquire iRobot for $1.7 billion
Yahoo Finance's Brian Sozzi and Julie Hyman discuss news that Amazon is buying Roomba-maker iRobot.
Video Transcript
JULIE HYMAN: Let's talk about one more thing that we have to mention that's just breaking in the past hour. So Amazon is acquiring Roomba maker iRobot. It's an all-cash deal valued at $1.7 billion. The company announced all of this morning.
Shares of iRobot were halted. I don't know if they were open again this morning. It looks like they are because they're popping by 20% here. Yes, they're moving. It looks like Amazon is down a little bit. And we were joking this morning. They just announced that One Medical buy. Now they're buying iRobot. I don't think there are any synergies here.
BRIAN SOZZI: Bring in the Whole Foods. Andy Jassy, get these iRobots in those Whole Foods aisles.
JULIE HYMAN: And some medical clinics in Whole Foods, too.
BRIAN SOZZI: Let's do it.
JULIE HYMAN: Let's just have it all there.
BRIAN SOZZI: I need to think a little bit more on this one. What is the play? Is this Amazon tracking its vast troves of data saying, hey, people are buying a lot of vacuums? We've seen a lot of homes sold over the past 2 and 1/2 years of the pandemic. Whatever it is, iRobot, despite new entrants and a lot of other competitors in this field, they are still seen as the premium player in this market.
And I think that underlines a lot of the acquisitions that Amazon has made, whether it's Whole Foods, premium player, One Medical, premium player, iRobot, premium player. And of course, a major software player here that is collecting large sums of data from us consumers. So part data play, part hardware play.
JULIE HYMAN: About where your dog has gone on the carpet.
BRIAN SOZZI: Taking a number two. Where's Sparky taking a poop?
JULIE HYMAN: You said premium product here. Are there any other robot vacuum makers?
BRIAN SOZZI: There are. You start to see them-- I can't believe I know this, but you start to see them creep into the likes of Walmart. You go down Walmart and Target aisles. There's been ones that are probably priced 25% to 30% below various Roomba models. But still, that price differential exists because they're still seen as making the best product on the market.
JULIE HYMAN: OK.
BRIAN SOZZI: I know I hit you with a lot here-- the take on Roomba, Adam Aron. There's a lot going on here. Let's recap, you know?
JULIE HYMAN: [SIGHS] It's Friday.
